Turning dependency into opportunity
Perhaps an awareness of this dependency could be the key to freeing ourselves from it.
First and foremost, for Europe, there is a serious dependence on fossil fuels. For example, the continent imports 20% of its diesel fuel requirements, 40% of which is sourced directly from Russia. In addition to this energy reliance, Europe is also highly dependent on protein. The continent is forced to import two thirds of its protein requirements.
This situation is hardly a new development. The Ukrainian crisis has thrown a spotlight on these dependencies that subjugate Europe. The Black Sea blockade is now depriving the world of 30% of its wheat resources and 60% of its sunflower needs. Furthermore, logistical complications related to the impossibility of getting products out of Ukraine are piling up. The fall in the availability of raw material, exacerbated by the financialization of the markets, is causing prices to soar. On the demand side, the legitimate concern of consumers triggered a dramatic increase in prices.
Let us not forget that we, the French and Europeans, are rather privileged. At a time when some developing countries, particularly in Africa, are lacking in energy and agricultural raw material, the current surge in prices stands as an additional obstacle.
A painful awakening calling for some difficult choices
It is as if both Europe and the world have suddenly woken up to the fact they are dependent on each other and that they are out of balance. Since the arrival of Covid, the word “sovereignty” has given rise to many debates, opposed many ideas, and sometimes divided society. Yet sovereignty requires support from everyone. Renewable energy as well as nuclear power, an agriculture respectful of the environment yet productive at the same time.
This plurality of solutions is all the more necessary as we face the climate transition. This is a transition that, unlike the previous ones – steam, electricity, digital, and others – cannot be imposed on its own. Because it requires drastically changing our lifestyles, this can only be accomplished through courageous political choices, made over time with determination.
What will tomorrow’s model be?
Could an awareness of one’s own vulnerability be the driving force behind this transformation? For the oilseed sector, this proved to be the case. In 1973, when the United States declared an embargo on its soya exports, this came as a shock to the agricultural world, as it was dependent on American soya for over 90% of its needs. It was out of this realization that Avril was created. Today, the Group, which does not pay dividends to its shareholders but reinvests its profits back into the sector, benefits from an economic model that is unique in the world.
“This model has already proven its worth, by helping to bring France’s protein dependency down from 90% to 44% today.”
This model has also proven equally beneficial from an agronomic point of view. The development of rapeseed enabled diversifying rotations and providing non-GMO oilseed meal for animal feed. Oilseed meal co-production also made it possible to reduce France’s energy bill thanks to biodiesel. Biodiesel is a green energy that reduces greenhouse gas emissions by more than 60% compared to its fossil equivalent.
However, the current emergency is forcing us to act ever more quickly. This is why we are encouraging the agricultural world to increase sunflower production on French soil by 30% vs. 2021 to reach 900 kilohectares. It is also necessary to develop the non-GMO soya sector in order to continue on our way to becoming self-sufficient in protein. We will also be supporting the development of plant crops such as high-protein rapeseed for the food market, in order to supply our Dieppe processing plant in partnership with DSM.
Finally, we will carry on developing our renewable energies such as Oleo100 biodiesel, as well as plant-based chemistry, in which Avril holds a leading position in Europe.
What we are implementing at present will not be enough. To meet the challenges of tomorrow, we also have to step up our research efforts. Only then will we be able to provide solutions to the current challenges posed by improving seed quality, reducing agricultural inputs, optimizing the supply chain, reducing losses, improving quality, and reducing our production costs.
Because these often contradictory issues must be addressed as a matter of urgency.
At Avril, our purpose, “Serving the Earth”, both commits us and obliges us. This requires us to contribute to the three essential shifts that are the food transition, the agricultural transition, and the energy transition.